India has the world's second largest road network, aggregating over 3.34 million kilometres. The share of road transport in the GDP is over 4.6 per cent in 2007 (as against 3.8 per cent in 2000), accounting for over two-thirds of the total transport contribution to the GDP.

Road transport has emerged as a dominant segment in India's transportation sector, growing at an annual average rate of 9.5 per cent during 2000-01 and 2005-06 as against 6.5 per cent growth rate of GDP. Simultaneously, the share of roads in total traffic has grown from 12 per cent of freight traffic and 31.6 per cent of passenger traffic in 1950-51 to the present 65 per cent of freight traffic and 85 per cent of passenger traffic by the end of 2006-07.

While the national highways account for about 2 per cent of the total road network, they carry 40 per cent of the total goods and passengers. Out of the total length of national highways, 32 per cent is single lane/intermediate lane, 56 per cent 2-lane standard and the balance of 12 per cent is 4-lane standard or more.

With the ever expanding number of vehicles (automobiles grew at the rate of 16.82 per cent in 2006-07), accelerated trade growth, increasing urbanisation, the need to reduce stress on existing highways and the need to provide connectivity for improved accessibility of hinterland, substantial investment is required to strengthen and expand the road transport network to meet both present and future traffic demand.

Private Sector

Increased resource requirement along with concern for managerial efficiency and consumer responsiveness has led to an active involvement of the private sector via both construction contracts and build-operate-transfer (BOT) based on either toll or annuity basis.

• Reliance Energy has three contracts to four-lane 400 km of highway, and is already working on four-laning five National Highway projects in Tamil Nadu, covering 400 km at an estimated cost of over US$ 762.42 million.
• L&T Inter-state Road Corridor Limited is executing the four-laning of the 76-km highway between Palanpur and Swaroopgunj on the East West Corridor.
• The consortium of Maytas Infra Private Limited and Nagarjuna Construction Company Ltd will four-lane the highway from Tindivanam and Pondicherry, at an estimated cost of US$ 70.09 million.
• Lanco Infratech has the contract to four-lane two highways in Karnataka at an estimated cost of US$ 247.41 million.
• DS Construction will develop the Gwalior-Jhansi section on NH-75, which includes four-laning at a cost of US$ 159.9 million.
• Era Constructions India Limited along with Karam Chand Thapar & Bros Limited will construct a section of the Delhi-Haryana Border to Rohtak. It is also involved in the construction of a four-lane Gwalior by-pass at a cost of US$ 73.8 million.
• Madhucon Projects will construct a section between Madurai and Tuticorin highway at an estimated cost of US$ 201.742 million.
• Jaiprakash Associates Ltd (JAL) is implementing the Taj Expressway project, which envisages a six-laned 165 km stretch connecting Greater Noida to Agra, at a cost of US$ 554.93 million.

Till now, 82 projects valued at about US$ 5.86 billion on BOT basis (toll based projects) have been awarded through public private partnership. Out of this, 32 projects have been completed and 50 are under progress.